Chris Grayling today accused lawyers of making “over the top” claims about legal aid cuts as he warned that spending on criminal cases must fall to protect NHS budgets.

The Justice Secretary said that lawyers had been “in overdrive” in opposition to his plans to cut £220 million from criminal case legal aid by making a series of unjustified and inaccurate allegations about the reforms.

These included a claim that the guilty would walk free as standards of justice collapsed and another assertion that hard-working families would be forced to remortgage their homes to protect themselves from jail if ever faced with prosecution.

Mr Grayling, whose plans have attracted almost universal opposition across the legal profession, insisted that such claims were wrong and that his reforms, which include the introduction of price competitive tendering for law firms providing legal aid, would maintain quality while improving value for money for taxpayers.

He also warned that legal aid spending, which until recent reforms was running at £2.1 billion a year, would have to fall further so that NHS budgets, which ministers have vowed to protect, could continue to be maintained as the Government spending purge continued.

He added: “Government is about priorities... Do people really want us to cut health budgets rather than work to create a more efficient legal system?”

Mr Grayling said that claims that the introduction of a means test affecting those with an annual income of £37,500 or above would affect ordinary families were wrong. This was because it was a net figure after tax and other deductions and amounted to actual yearly earnings of about £100,000 — a far greater total that covered a relatively small number.

He also hit back at Sarah Forshaw QC, the head of the South Eastern Circuit, which represents barristers in the London area, for claiming last week in the Evening Standard that his reforms would end centuries of fair access to justice.

Mr Grayling said: “Even in that spirit of an evocative and creative defence, that’s just a tiny bit over the top.”

The Law Society, Bar Council and other legal organisations have voiced their opposition to Mr Grayling’s reforms, which include the introduction of a price competitive tendering system under which around 1,200 law firms are expected to close and legal aid defendants will lose the right to choose their solicitor.

Critics claim this will lead to lower standards and a loss of expertise as cut-price lawyers take over legal aid work. Mr Grayling said, however, that firms would only given the new legal aid contracts if they provided a “quality service” and that no defendant would be left without a lawyer. A consultation on his plans ends today after which final proposals will be published.